Crypto fans can now invest in exchange-traded funds.
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Crypto fans can now invest in exchange-traded funds.

The US has finally made the decision that has been awaited for a long time to allow Bitcoin to be included in mainstream investment funds.

A new class of exchange-traded funds (ETFs) has been approved, which can be purchased by anyone, including pension funds.

In addition to the announcement, the head of the Securities and Exchange Commission issued a stern warning regarding the risks involved.

There were, however, a number of cryptocurrency fans who reacted with glee – and memes about becoming wealthy as a result.

As a result of concerns about fraud and manipulation, the US financial watchdog had repeatedly rejected earlier approval requests.

In spite of this, a US court ruled last year that the government’s justification was insufficient.

Earlier this week, the regulator canceled an “unauthorised” post that announced the decision early after a false start.

Investors should not mistake the new approvals for an endorsement of cryptocurrency, according to SEC chairman Gary Gensler.

According to him, Bitcoin is primarily a speculative, volatile asset used for ransomware, money laundering, sanction evasion, and terrorist financing.

Despite the myriad risks associated with bitcoin and products that are based on cryptocurrency, investors should remain cautious.

Portfolios of exchange-traded funds allow investors to bet on multiple assets without having to buy any of them individually.

Crypto fans can now invest, they are traded on stock exchanges. Their value is determined by the overall performance of the portfolio in real time.

ETFs can contain a combination of gold and silver bullion, for example, or shares in top technology and insurance companies.

A spot Bitcoin ETF will buy the cryptocurrency directly, “on the spot”, throughout the day, at its current price, as opposed to indirect ETFs that already contain bitcoin indirectly.